MOSCOW (Pakistan Point News / Sputnik - 01st February, 2023) South Korea's exports fell by 16.6% year-on-year in January to $46.3 billion due to low demand for semiconductors and other key items amid economic downturn, the Ministry of Trade, Industry and Energy said on Wednesday.
"The Ministry of Trade, Industry and Energy announced on February 1 that Korea's exports in January fell 16.6 percent year-on-year to USD 46.3 billion. Imports also shrank 2.6 percent to $59.0 billion. Trade balance stood at a deficit of $12.7 billion," a statement read.
This is the largest ever monthly trade deficit in the country caused primarily by high energy prices in December 2022, the Yonhap news agency reported.
Meanwhile, the exports decline was driven by the fact that such key export items as semiconductors (overseas sales fell by 44.5% to $4.8 billion), petrochemicals (fell by 25% to $3.8 billion), displays (fell by 36% to $1.3 billion) and steel (fell by 25.9% to $2.7 billion) were affected by the global decrease in demand, the trade ministry said.
The exports reduction can also be explained by high levels of inflation and interest rates, "as well as a high base effect from previous year's record-breaking January exports," the statement read.
South Korean Industry Minister Lee Chang-yang said that the government had taken all possible measures "to revive export momentum despite continued downside risks," Yonhap reported.
